I have no idea if the rumor is correct or not, but even if it is there a couple of ways to view it. First of all, if a company needs to raise capital the SEC has provided that path through accredited investors. Any of us that meet the criteria of an accredited investor according to rule 501 of reg. D have the same opportunity to do what the rumor suggest. I would imagine if any others, whether long term or short term holders meet the criteria, and are able to come to an agreement of discounted share price could do the same thing with WNBD as well as many other companies. There was certainly nothing illegal if it did happen, and whether or not it's considered unethical is a personal point of view.
I'm not trying to spin this in a positive manner, but unfortunatly the company is not in a self-sustaining phase, and therefore capital needs to be raised. From where I stand, it makes no difference whether it's a known member of ihub or an unknown hedge fund. The part of being unethical relates to the manner in which the shares were traded, and belongs to the accredited investor that done so.
If I truly felt this stock would never achieve a better position in it's busisness venture or it's share price I may look at this differently. Being that I do feel it will achieve some/all of it's goal someday, I would much rather have someone that can bring new shareholders into the mix (pumping as it's being called) while they are executing their right to sell their shares, as opposed to others (georiga boys as they are refered too) dumping while driving the share price down.
It's all a matter of prespective (spin), but as long as the company needs to raise capital I know which way I prefer to see it done. I could go deeper, but enough for now lol.
